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30Y Holds Below 11.00; SARB Unlikely to Bow to 1Q21 Growth Concerns

SOUTH AFRICA
  • Local rates marginally higher at the open, following on from a choppy session yesterday.
  • 30Y sold off +11bp, but crucially pulled back below the 11.00 handle to close +6.5bp.
  • 2Y yields dipping slightly as some see 1Q21 growth concerns as cause for a rate cut at next week's SARB.
  • However, with average inflation expected to remain around the midpoint of the 3-6% range
  • and yield curves steepening into the Feb budget
  • it seems unlikely that Gov Kganyago will opt for a 25bp cut.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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